The Kenya Revenue Authority has formally taken over the collection of the Sugar Development Levy from both sugar millers and importers, following a directive by the Cabinet Secretary for Agriculture and Livestock Development.

The move, which is grounded in Legal Notice 113 of 2025 under the Sugar (Sugar Development Levy) Order, officially came into effect on July 1, 2025.

In a public notice issued on July 31, the tax authority announced that it will now be responsible for collecting a four per cent levy on both locally manufactured and imported sugar, in a bid to streamline revenue collection and support the development of the sugar industry.

For domestically produced sugar, millers are required to remit a levy equivalent to four per cent of the ex-factory price.

These payments must be submitted by the tenth day of the month immediately following the one in which the sugar was produced.

To comply with the payment procedure, millers must generate payment slips using the iTax system.

While doing so, they are expected to select “Agency Revenue” as the tax head and “Sugar Development Levy” as the sub-tax head. The payment can then be made through KRA agent banks or electronically via mobile money using eCitizen Paybill Number 222222 or by dialling *222#.

For imported sugar, the levy will be charged at the point of importation and customs declaration. The four per cent will be calculated based on the Cost, Insurance, and Freight value of the imported sugar.

This applies to goods imported under the East African Community Common External Tariff categories that include tariff headings classified under 12.12, 17.01, and 17.03.

KRA has also advised stakeholders with any questions or clarifications, to contact the authority’s support team via the email address callcentre@kra.go.ke or through its official telephone numbers 020 4 999 999, 0711 099 999, or 0771 099 999.

The implementation of this levy has come at a time when tensions over sugar imports continue to rise, with opposition politicians expressing concern about the safety of incoming consignments.

Allegations have emerged regarding a consignment of 25,000 metric tonnes of sugar said to have docked at the Port of Mombasa.

During a press conference held on Thursday, Wiper party leader Kalonzo Musyoka called on authorities to take immediate action. “We demand that this consignment, already earmarked, be publicly condemned and destroyed as it is unfit for public consumption,” he stated.

Although the government is yet to issue an official response to the allegations, the timing of the levy rollout has placed the sugar sector under renewed scrutiny, especially with growing public and political pressure over the regulation and safety of sugar imports in the country.